France try to steal British Tax revenue
France are making things problematic for the Britain in exit talks. Bruno Le Maire, French Economy Minister, has sis there is little chance of the UK securing a free trade deal for financial services that would provide the level of access the UK require. Le Maire said that Britain would will be forced use a legal mechanism known as equivalence. Equivalence gives countries outside the EU limited access to the single market, access can be revoked at any time which would certainly not be suitable for financial services. Goldman Sachs have already started moving UK based employees to Germany due to the uncertainty surrounding their future.
Theresa May’s call for a mutual recognition system that would still give UK financial services access to the single market has already been refused. Single Market access for financial services is one of the key factors in Brexit talks and this could be a major point of contention. Financial services sector is the UK’s biggest form of tax revenue.
France’s thinly veiled ruse to turn France’s capital into the new centre of financial services is causing real trouble for the UK economy and Sterling as a result.
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